QUESTION 1

Paddle Down Racers makes an offer to Blessings, a six-year-old boy who is nicknamed "Fast and Furious" due to his knowledge of performing cars, to pay him R500 000 if he can drive 270 kilometres from Tshwane Central to Polokwane City in 10 minutes with a car. In terms of the law, the general speed limit is 120 kilometres on open national roads.

1.1 Was a valid contract concluded between Paddle Down Racers and Blessings? Motivate your answer. (6)

1.2 Would your answer be different if the offer was made to Morongwa, who is nine years older than Blessings? Motivate your answer. (4)

1.3 List FIVE requirements for the formation of a valid contract. (5)

QUESTION 2

Study the following scenario and answer the questions below: Princess enters into an agreement with her friend Mmakgosi in terms of which Princess will use Mmakgosi's house and pay a monthly rent of R 5000,00 until she, Princess, buys her own house.

2.1 Is this an example of a condition or time clause? (2) Motivate your answer (2) (4)

2.2 Specify the kind of condition or time clause above. (2) Motivate your answer.(3) (5)

2.3 What kind of contract did Princess and Mmakgosi enter into in which Princess will use Mmakgosi's house and pay a monthly rent of R 5000,00 (1)

2.4 What are the three essential elements of the above contract? (6)

QUESTION 3 Study the following scenario and answer the question below: King and Kong enter into a contract in terms of which King has to deliver a dozen bottles of export whiskey to Kong. Kong has already paid the purchase price. King now indicates that he does not intend to perform in terms of the contract.

3.1 What form of breach of contract has King committed? Motivate your answer. (2)

3.2 Why would the above act not constitute mora debitoris? Distinguish mora debitoris from the breach of contract identified in 3.1 above. (3)

QUESTION 4

Discuss three possible orders of the remedy available to the prejudiced party where there has been a breach in the execution of the contract. [6]